My Take On The Gunbroker Sales Tax Situation
nunn
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A buyer contacted me to finalize our deal, and he wanted to know why the sales tax was over 10%. I explained that the "compliance fee" is added into the sales tax figure and boosts that figure somewhat. He didn't like my explanation and said he may not be buying any more guns on Gunbroker.
The government says Gunbroker must collect the sales tax for the various states, and then remit those amounts to the states. The government does not offer any "facilitator," and Gunbroker is a "facilitator," any help in getting this done. GB just has to do it. They probably even had to hire extra people to get this task accomplished. So, there is cost involved, and the "compliance fee" is an attempt to recoup some of that expense.
If the "compliance fee," being added to the sales tax, pushes the "taxes and fees" on a sale to 10%, or even 12%, think of it as a buyer premium. Buyer premiums are common in live auctions, and even in internet auctions. I just participated in an internet auction, and the buyer premium was 18 %, and that's in addition to 8.25% sales tax. I kept those figures in mind when bidding, and I lost a few items, but I won a few too.
Side note: If you are a dealer buying on Gunbroker for resale, you can submit your sales tax exemption forms to Gunbroker, and your purchases will be tax exempt.
There's my 2 cents. Spend it wisely.
Comments
This is no different than online retailers folding the added expense into the price of their products.
No business in history stayed in business without an acceptable profit margin.
All we have to do is use Autopay, built into the bidding process at Gunbroker.
Figure out what is the maximum you will pay for an item. Then, bid 90% of that figure as a max bid. Then, go on with life and forget about it. You'll either win it or make someone else pay more than your max bid.
Taxes for me 7%, compliance fee 1%, cc fee 3 to 4% make it 3.5%, shipping $40 plus then $20 for receiving. On a $500 bid that's an extra $117.50. I have to pay sales tax if I buy from a local gun store so really it's an extra $83.50. That's if shipping is only $40. The percentage goes down the more you spend as shipping a $1000 gun is the same as a $200 gun.
It makes it hard to get any real bargains. I recently bought a couple of shotguns but they were guns I wanted and found on the auction side.
While anyone with basic math skills can figure out what to max bid for the value they are seeking most do not like things to get to complicated. When a person buys local they pay sales tax, we pay sales tax on everything so it's pretty simple. Layers of fees while easily figured have to be figured, that's not as simple. I would guess some people are going to be turned away by this. While some do, most people to not buy where a buyer's premium is standard.
I just had someone ask me if I would sell them one of my listings for $200 shipped....its already over $200 with five days left. I am constantly reminded of how "below the curve" some people actually are. Another guy has already left me a "C" on my feedback because we made him send over an FFL and couldn't just take the info off of Gun Broker (no FFL uploaded to the system.) He hasn't even gotten his gun yet.....its supposed to ship today, but I'm conflicted about rushing that one. Sales tax and compliance fees might as well be theoretical physics to some of these people.
My take and many others as well I’d guess is the GB system as it is now set up just made the local gun shops more attractive since I can pretty much get things for the same price and only pay sales tax vs GB and paying sales tax , a compliance fee , shipping , and a transfer fee at the receiving ffl. GB is now only good for out of production and harder find items not normally found at the local shop.
I am a firm believer in the market and capitalism.
If people do not like paying compliance fees and sales tax, especially when buyer/seller are not incorporated or LLC and sales taxes collections are not applicable, other opportunists and entrepreneurs will take advantage and offer alternatives.
My post may hurt some ears, aside from those trying to make a buck, there are much more trying to save a buck.
early on I knew ( mr obvious ) the government would not let all that money get passed around in the auction sites and not get there fingers' on it . I would wager its added countless millions to the bank for them to blow on other country's and illegals
why I hate taxes completely, the government waste so much money its not even funny , but such is life I just consider it as part of the price as stated with shipping and tax and transfer fees ( on guns ) its killing off the deals especially on smaller items who wants to buy a 1.00 to 10.00 item then add almost the same amount to ship it as its went crazy to ship or mail any thing . it and then the tax . like a lot of other things I guess just remember the good old days 😁
Cherish those days D-R. They'll never return I'm afraid.
😕
alas, for me also the LGS and individuals look better and better each passing month. Montana has no sales tax, and face to face sales require no background check. i could buy any gun i desire from an individual with minimal search effort. and most sellers are agreeable to meeting 1/2 way. oh, there will still be an occasional impulse last second bid/buy of something that might have been on my wish and hope list.
This is no different from my local pizza place collecting sales tax and giving it to the state. GB is making it harder than it has to be.
Yep, hundreds and hundreds of different taxing rates nation wide. No easy chore to comply.
Don't worry with a cashless society coming all fees will be collected by the state to facilitate the transfer. No middle man will be in The Transaction any more over tax collections. Gun & ammunition sales may not be done on line with the internet anymore either.
serf
Auction fees are expected. Sales tax is finite.
While I am not wild about spending more, I still like the advantage of shopping from home in stores all over the country for a French Model 1935S, instead of the 10 or 12 black rifle places in town. New stuff I have covered with my transfer FFL.
Many other businesses have figured this out.
When I order ice cream from the Schwans guy when he delivers it his little handheld computer figures the correct sales tax based on the delivery address.
That's how I use sites like this. I've found some good deals on accessories, like choke tubes and such. Though the last ones I bought cost more to ship than buy. Still three tubes for $23 was good. Then looking for guns I may not see locally like a pre 64 model 70 in .270. I recently bought a model 12 in 16ga with 2 1/2" chamber not a great bargain but it was there.
We get shipping added to the cost of the item then taxed. So we are taxed on shipping also. Maybe everybody does that don't know, but it doesn't seem right. If fees are added, like a compliance fee there should be a line item accounting of what we are paying for. When I can't figure it out I get frustrated. I can't figure it out I use my county sales tax, the next county sales tax. There is probably a sales tax dart board marked in percentages.🙉
Collecting sales tax on shipping implies that amount in the transaction is being remitted to the shipper. Is it? Just how would anyone pay sales tax to the USPS. If it's collected and not remitted, where is it going.
It is our patriotic obligation to pay taxes.
It is our capitalistic obligation to avoid taxes.
It sounds like an oxymoron, but it really isn't.
Real real real patriotic this yr..😃
My patriotism is to the U.S. OF A.! NOT to some moronic blue (or red) state gubner.
It's easy for me to miss things, but I smell even another unfunded mandate.
You do. Gunbroker remedied the situation by collecting a "compliance fee." From looking at my sold orders, the fee usually amounts to 1% of the sale price. That fee helps offset the cost of collecting and remitting sales taxes for the various states.